Skip to main content
Normal View

Tax Code

Dáil Éireann Debate, Thursday - 18 October 2012

Thursday, 18 October 2012

Questions (103)

Martin Heydon

Question:

103. Deputy Martin Heydon asked the Minister for Finance further to Parliamentary Question No. 52 of 11 October 2012, if it is possible to introduce a threshold for boards of management for small school projects so that the additional administration work set out in that reply is not necessary for minor maintenance repair works for example broken window, broken boiler; and if he will make a statement on the matter. [45548/12]

View answer

Written answers

I am informed by the Revenue Commissioners that contracts for routine maintenance work do not come within the scope of Relevant Contracts Tax (RCT). However, RCT applies to all construction works ranging from major construction projects to general repair works. Repair work includes the replacement of constituent parts of a building or structure, for example, the repair of a broken window. Maintenance, on the other hand, includes cleaning, removal of graffiti and the unblocking of drains, etc. In the light of the difficulty some school boards of management may be having in fulfilling their obligations under the RCT system, the Revenue Commissioners have made available detailed guidance notes specifically tailored for boards of management regarding the operation of RCT. These guidance notes, which clarify the position in relation to repair work and maintenance work, have been published on the Revenue website, www.revenue.ie. The need to ensure tax compliance by subcontractors is particularly important where the Exchequer is the ultimate source of the funds being paid out by school boards of management and other principal contractors. RCT plays an important role in ensuring tax compliance by subcontractors in these sectors. Therefore, it would not be appropriate to introduce a threshold for this type of work. From 1 January 2012, the Revenue Commissioners have substantially modernised the operation of RCT following the introduction of a dedicated online facility which offers principal contractors a fast, efficient and paper-free system. This has significantly reduced the administrative burden associated with RCT. Finally, having regard to the pressures on the public finances, it is important that the RCT system is implemented correctly to minimise tax evasion in the construction sector, particularly where the project involves substantial State funding. The new online system introduced by Revenue has significantly simplified the RCT process for principal contractors, including school boards of management.

Top
Share